NEWARK, N.J. - Venture capital fund-raising slowed in the third quarter, according to Venture Economics and the National Venture Capital Association. Their report said 46 venture capital funds raised $6.2 billion in the third quarter, a 37% decline from last quarter when 78 venture funds raised $9.9 billion. The comparisons are even worse compared with last year, with a 78% decline from the $27.6 billion raised by 126 funds in the third quarter of 2000.
Venture capital funds invested $7.7 billion in 873 companies in the third quarter, a 31% decline from the previous quarter, and a 73% decline from the third quarter last year, when venture capital investment peaked at an all-time high of $28.4 billion invested in 1,814 companies.
30 years of venture capital a boon for economy, study says
NEW YORK - Venture capital invested between 1970 and 2000 created 7.6 million U.S. jobs and more than $1.3 billion in revenue as of Dec. 31, according to an economic impact study released by the National Venture Capital Association. The research, conducted by DRI-WEFA for the NVCA, shows that $273.3 billion in venture capital created companies that were responsible for 5.9% of the nation's jobs and 13.1% of the gross domestic product in 2000. Venture investment led to job and revenue creation most frequently in the computer, consumer and medical health industries. California, Texas, Pennsylvania, Massachusetts, New York and Washington were the leading states in both jobs and revenue creation.
LJH Global hedge fund index swoons in September
NEW YORK - The LJH Global Investments hedge fund index fell 1.45% in September, mirroring other hedge fund indexes, which also lost ground. Only three of the 15 substrategies LJH tracks posted positive returns: The short-only index gained the most, posting a 5.65% return; the convertible arbitrage index was up 0.7%; and the European index inched up 0.08%. The biggest loser in September was the emerging markets index, down 5.87% for the month. The hedge fund numbers still outperformed the S&P 500 and the Russell 3000, which both lost about 8% in September. For the year ended Sept. 30, the overall LJH hedge fund index is up 2.07%, while the S&P 500 is down 21.16% and the Russell 3000 is down 21.53%.
Tremont Advisors taps RiskMetrics for risk reports
NEW YORK - Tremont Advisers hired RiskMetrics Group to provide web-based hedge fund risk reporting for Tremont's hedge funds-of-funds investors and advisory clients, according to a news release from Tremont. The companies plan to jointly develop the risk reporting system and best-practices reporting standards for hedge funds and hedge funds of funds. Tremont will help RiskMetrics design forms for specific hedge fund strategies, said Cynthia Nicoll, director of business development for Tremont. Once the forms have been designed enabling RiskMetrics to generate risk reports at both the individual manager and aggregate portfolio levels, Tremont will subscribe to the service. RiskMetrics will be able to offer the jointly developed risk reporting product to other subscribers.
Hedge fund managers in which Tremont clients invest would allow RiskMetrics to see their individual positions and use that information to generate risk reports for Tremont's investors. In return, RiskMetrics would safeguard the hedge fund managers' position-specific information.
Weiss, Peck to offer convertible arbitrage
NEW YORK - Weiss, Peck & Greer is adding a convertible arbitrage strategy. The firm managed $2.2 billion in alternatives at the end of September.
Hawaii ERS acquires California apartment complex
HONOLULU - The Hawaii Employees' Retirement System purchased the Corte Madera Apartments in Camarillo, Calif., said Kimo Blaisdell, CIO. Terms of the deal were not disclosed. The apartment complex is a new 160-unit, two-story garden-style community. PMRealty Advisors, which manages $100 million in a discretionary separate account for the $8 billion system, advised on the acquisition.
N.Y. State Teachers invests in lower Manhattan property
NEW YORK - The New York State Teachers' Retirement System, Albany, and New York Life Investment Management have co-invested in a $58 million leasehold mortgage on property just blocks from the ruins of the World Trade Center, said Dave Daly, NYSTRS spokesman.
The $80 billion system and New York Life each contributed $29 million to fund the loan on a 27-story, 324-unit apartment building in Battery Park City, completed in March.
"This property, located in the heart of New York City's financial district, symbolizes our confidence in the underlying strength of the New York City and U.S. economies," said George Philip, NYSTRS executive director
LJH Global, Caprock offer joint hedge fund of funds
NAPLES, Fla. - LJH Global Investments and Caprock Capital Advisors jointly plan to offer a hedge fund of funds to institutional and high-net-worth investors. The strategy, to be called Caprock Advantage, is designed to have low volatility and low correlation with traditional global and domestic market indexes, according to a news release from LJH. Caprock traditionally invests in midcap and large-cap growth equities, while LJH specializes in hedge fund consulting and advisory services.